Amazon customers in the US can now order food from nearby restaurants through Grubhub directly from the e-commerce giant’s website or app.
If you’re an Amazon Prime member, you can get even more value out of this offer: members get a free Grubhub Plus membership, normally valued at $120 per year, which offers free food delivery on orders over $12, discounted service fees, and 5 percent credit back on carryout orders.
The companies said the ordering experience will be “identical” to a regular order on the Grubhub app, with delivery people completing the service just like any other delivery. The service is available to all Amazon customers, even those who aren’t Prime members.
Additionally, Amazon customers can opt-in to link their Grubhub account to their Amazon account.
Amazon customers in the US can now order food from nearby restaurants through Grubhub directly in the e-commerce giant’s app.
Partnership aims to scale
This marks a major win in attracting new customers for Grubhub, which currently ranks third with 8% of the U.S. market share, according to Bloomberg Second Measure, behind rivals Uber Eats at 23% and DoorDash at 67%.
“Amazon gives restaurant owners access to millions of consumers,” Grubhub CEO Howard Midgar said in a statement.
Midgar added that the deal will increase sales and create more revenue opportunities for Grubhub’s delivery partners.
Grubhub acquires investor
The inclusion of Grubhub also marks the first time Amazon has integrated third-party restaurant ordering within its app, raising the question of why Grubhub was chosen over its competitors.
The move builds on an ongoing partnership that began in July 2022 when Amazon Prime members were given one year of free access to Grubhub Plus. The deal also gave Amazon perks including a 4% ownership stake in the food delivery company.
With this new partnership, Amazon now owns a 7% stake in Grubhub, which it could increase to 18% over the next five years.
